why did it go way up to $147 a barrel?sically, there was a-- what's called a fear premium. >> and the fear was that saudi arabia itself had peaked out, that you'd reached your ceiling of how much available oil is left in your overall reserve. so what's the truth? >> the truth is, here is the kingdom with more than 260 billion barrels, and i firmly believe that the potential to add another 200 billion barrels of oil are there to be found. >> if the oil minister of saudi arabia had one message it was, there is no need for those fears. and to make the point, they let us see facilities that will increase saudi capacity from about 10 million barrels a day to more than 12 million. and they're going to the ends of the earth to do it. this is shaybah, a desert wilderness where temperatures can reach 135 degrees. the saudis say that 18 billion barrels of oil lie beneath these red sand dunes, more than four times the proven reserves of alaska. to tap into it, the kingdom's national oil company, saudi aramco, had to build an oasis he

between seven and eight million barrels a day. three to four million barrels a day, fluctuates of oil we were shipping dollars abroad for and getting back oil. we're not doing that anymore. melia: it would be even worse if we weren't, prices would be even higher. what canwe to lower the price of gasoline at pump? what c we do today? what kind of policy can we put forth? what would make a dierence? >> today, i don't think there is any policy you could do tay. by allowing the boon to take place you put oil on the market. quite frany it is a pretty scary scenario to think where the mket would be out the 1.6 million barrels a day. spare capacity in the world is 2 1/2 3 million barrels a day. could be a lile higher. i really nder if the u.s. could put the sanctions on iran it has been able to if it weren't for the u.s. boom and supply. meliss that is a good point. >> you would beealing with no essentially spare capacity in the world, if you lost the iranian output and produced 1.6 million barrels a day less in the u.s. than you are now

actually feel this scarcity and by feel i mean oil prices hitting two or three hundred dollars a barrel i mean where we feel it. you know we're already feeling it is the era of cheap oil that's over right now with you know lots of of talk about there about shale oil we've got the titles we've got the tar sands deepwater drilling we can do but all of that coming in at seventy eighty maybe ninety dollars a barrel if oil prices somehow went below seventy dollars a barrel the predictions easy to make a lot of drilling will happen the next thing you know supply always falling so the first thing we can say is that the era of cheap oil is over and that's the era in which all of the policy makers and all of our economic policies and understanding is models all of those were literally developed in a world where we had twenty thirty dollar a barrel oil in today's terms now as we cast forward yes we're making some nominal gains here and there but the world crude oil has been flat towing since about two thousand and five that about seventy five million barrels per day this is just crude oil i'm not

there's a wooden barrel, these old wine barrels, and he filled it water. completely filled. and at the top, covering the top, had a hole there, put a pipe, the pipe went up, oh, several feet, put a funnel at the top of the pipe, took a bucket of water, smaller than this. climb the top, pour the water into the funnel, filled up-- [makes sounds] --guess what happened? [makes sound] barrel burst. the barrel burst because of the enormous pressure. and here's the bit. the pressure in this barrel is just the same as if he had filled it with that amount of water. it's just the depth to the free surface to where you are, that particular depth multiplied by the density of fluid, that's the liquid pressure. really, really neat. this idea that pressure depends on depth tells us why dams are built the way they are. do you ever see a dam like this? good design or bad design? bad. very bad design because the pressure is greater against the bottom and that's where it should be thicker, not like that, yeah. so we find maybe dams like this, huh? so the pressure down here exerts a force that'

hecht: before the stream restoration, when you have a rain event, the stream would just be barreling, just filled with tons and tons of water, and the water would move very quickly, eroding the stream banks further. narrator: the rushing water ran all the combined sewage straight into the monongahela river, which is a main supplier of drinking water for the region. hecht: what has happened because of the restoration is the water overflows its banks, it floods into these nice flood plains with native plants. and then slowly the water percolates back down into the stream. narrator: this allows the land to naturally filter and clean the sewer overflows before they enter the river. the restoration included extensive environmental changes to improve the stream and infrastructure changes to reduce the csos into the watershed. hecht: when i first started talking with people about stream restoration, i kind of imagined people out with shovels and small-scale. this is a massive $7.7 million project. schombert: nine mile run watershed is the most significant urban watershed restoration ever don

>> we got oil settled on the session at $88.14 a barrel.ing session dipping below $88 a barrel. everyone was watching the trade segment because we down on the trading floor with traders warning everyone of the move where we dropped below $90 a barrel. you guys were warning of this was going to continue. what is the biggest thing driving prices down nearly $4? >> backing out the volatility factor you have waning demand across the united states and the world so it is down to the fact that if you don't have demand in the u.s. highest price is still high which is why it is slow to 80. sandra: does the debate play apart? >> really will be more pro drilling sending oil lower. a better chance of getting elected. sandra: do you have a way of playing chesapeake with a buy on this? >> chesapeake natural-gas will be the beneficiary and continues to rise. new uses a driving that market and apache pricey and as oil drops apache was richly valued will come down and has an aggressive rock. sandra: using oil is down? natural gas down even more. down 5%. a

way north after barreling iito cuba.so ffr... at leest 21 people are dead in the carribean as a result f the st. ssorm.now that she's heading up tte easttcoast.. we're all path... like ort lauderdale in llrida.... are already experiencinggrough surf. emergency manngeeent ooficials arr already filling saadbags in nee ersey.... where sanny landfall early next week. - we will be pilling up as uch sand as possible along the beachfront. i think wwter other typeeof damage and the hardest thing issto stop water ooce t starts coming up. hurriiane sandy has been niccnammd "frankennttrm" because forecasters say it could mmke landfall in new jersey the day beffre halloween -- nd run smack iito a powerful winter stoom -3. rippling storms like the one -3. we'rr braciiggfor... bring the threat of massive power outagee. outages.b-g-e says it's preparrng now.megan gilliland is live in north baltimore with more onnwhat the plan is... if several thousandd homes were to lose power over good morning guys,if hii storm were to bring the stronn winds t

. >> the tall tank in the middle called the gun barrel separates oil from water. the explosion occurs when the oil, made dangerously hot by the fire, flows through a pipe into the smaller tank that contains raw crude oil. >> there's a scavenge line up high on the side of the gun barrel that scavenges raw crude oil off the top of the barrel and dumps it into two holding tanks on the east end of the facility. >> the video shows the super-heated glob of oil funnel from the gun barrel into the holding tank, where it ignites the raw crude inside. seconds later, the flare erupts. then the tank blows up. >> it went up over our heads. i'm going to say every bit of 200 feet high. i could still see the tank today with fire coming out of the bottom of it as it's spinning going through the air. it landed about 75 or 80 yards away from us. we were very fortunate it didn't come down on one of our personnel or our apparatus. >> the tank right next to it explodes soon after, but this one stays anchored to the ground. >> the next explosion was the second holding tank that had raw

any barrel of gasoline produced in the u.s., gallon of gasoline, whether here, there, freesup a barrel to be sold here. oil, it goes where it goes and price is sort of settled that way. even if it is n used here it still lowers the price for us here in the u.s.? >> well it is a global economy. so you can't just separate u.s. oil. melissa: right. >> but when you get down to the fight we have, is in texas statutes. we're saying transcanada has the right to build their pipeline but they just don't qualify as a common carrier and they can't take land from those of us landowners who don't want a pipeline on our place. if my neighbor wants it that's fine. we don't want it on our place and you can't take our land for that. melissa: i certainly har you on that front. it is a very sticky issue. i understand transcanada offered you $5,000 at first. then they increased offer of $21,000 for two acres of your land. you took them to court. the court ruled they have to only give you $10,395. at the end of the day is this about money is there a price at which you would ll your land? >> it is absolutel

we've broken below $90 a barrel. to what extent was that both a technical and psychological barrier? it opens up much further to the downside? >> it was a very big fundamental or technical number at $90. i think the reason we got down to that $90 level is because of bad possible builds coming out from the numbers that were released at 10:30 and they were bearish. we also have bad economic data coming out from around the world. all bearish on crude oil. had we broke $90, it exasperated itself to the downside. i personally see $86 to $85 as a low for crude oil. what i'm really looking for is to see unlead gas prices at the pump coming off. i haven't seen that just yet. however, unlead gas came off considerably today. >> guys, i want to hit on something else. we had the benghazi attack in libya. we've seen new violence in egypt. syria is a disaster. we've got now increased tension with the people of iran. the middle east situation is not getting any better. why aren't we seeing oil at -- what's the risk of $125 a barrel

as is an decide barrels towards the east code, u.s. authorities order thousands to evacuate for the the biggest storm. >> my first message is to all the people across the eastern seaboard atlantic going north that you need to take this very seriously. >> all u.s. stock markets will be closed today. its first weather related closures in 27 years. and shares in ubs rise in the open after reports swiss bank may cut 10,000 investment banking jobs and wind down up to 15 trading businesses. police wen and his family fight back. their lawyers call it untrue and are considering legal action against the "new york times." for our u.s. viewers, the show will be on just one hour this week because europes has gone off daylight savings time, so we're just four hours ahead now of new york time. hurricane sandy is also still several hours away from make landfall, but the impact of the storm is already being felt. transportation has ground to a halt as new york and other major eastern cities have shut down mass transit, airlines canceling flights and i

supply fell by 500,000 barrels.s were expecting a rise of and a half million barrels, but despite the inventory, a glut of gasoline in that same report dragged down the complex. oil settled down more than 4 percent today. 8814 a barrel. that is the lowest close in two months, down below 90. opening arguments began over $10 billion oil refinery in south dakota. environmentalist groups want the state supreme court to strike down a permit allowing its construction. the elk point refinery would process 400,000 barrels of canadian oil per day. i think we need that. retroactive taxes are threatening to devastate u.s. solar companies one business owner is right in the cross hairs, and he is here to explain next. it is a crazy story. plus, when the government is seeing red. preparing for a major crackdown. piles of money in solar panels coming up. ♪ [ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or make 70,000 trades a second... ♪ reach one customer at a time? ♪ how

safe sip stands for safe, sustainable innovative portable purification and it's this barrel that hasdle, and as the people in the village get the stream water, get the water from their source into this barrel and push it back to their communities, as its rolling, it's sending the water through a filtration system, and not only does it purify the water, it saved them 75% of the trip that they normally make to their water source, because this one barrel can hold 30 gallons of water. >> how easy is it for somebody to push this? >> i imagine something like pushing a lawn mower. especially because this thing, once it gets rolling it's probably easier and easier to push. >> purify water for up to three years. it's something they can use for an extended period of time. >> and people are taking notice of this incredible innovation. in fact, these four students ent ared the 10,000 solution showcase, which was an innovation challenge at arizona state university, and they won the grand prize with their safe sip device, which earned them $10,000. what these four students are hoping is that they

thiwere when oil was costing $147 per barrel?nt to say that again. when oil was $147 we paid under five bucks of gas. and it was $147 and now it is $92 a barrel and yet gas is still the same price. still the same price. is it a price fixing ♪ one, two, three, four ♪ ♪ you say ♪ flip it over and replay ♪ we'll make everything okay ♪ walk together the right way ♪ do, do, do, do and also to build my career. so i'm not about to always let my frequent bladder urges, or the worry my pipes might leak get in the way of my busy lifestyle. that's why i take care, with vesicare. once-daily vesicare can help control your bladder muscle and is proven to treat overactive bladder with sympts of frequent urges and leaks day and night. if you have certain stomach or glaucoma problems, or trouble emptying your bladder, do not take vesicare. vesicare may cause allergic reactions that may be serious. if you experience swelling of the face, lips, throat or tongue, stop taking vesicare and get emergency help. tell your doctor right away if you have se

thiwere when oil was costing $147 per barrel?> i want to say that again. when oil was $147 we paid under five bucks of gas. and it was $147 and now it is $92 a barrel and yet gas is still the same price. still the same price. is it a price fixing ♪ one, two, three, four ♪ ♪ you say ♪ flip it over and replay ♪ we'll make everything okay ♪ walk together the right way ♪ do, do, do, do >> i also believe that we have to look at the energy source of the future like wind and solar and biofuels. >> at the same time gasoline prices have double electric rates are up and food prices are up . health care costs up by $2500 . middle income families are crushed. >> it is shocking. i have to spend it to fill up my car. >> 70 dollars. >> and the prices will go down a bit . then they will jack them up a bit. >> in california last week when gas prices went over five bucks a gallon and over six in some communitis and people were mad as hell for not doing enough to tap our oil supply. and i was mad myself. and the next guest said the gas price crisis

a volatile day for the oil market, crude prices dropped below $90 a barrel during the midday, but creeped back towards $92 on escalating tensions in the middle east. meanwhile, gasoline prices are still on the high side. they're up 13% year over year. but as diane eastabrook reports analysts think those unseasonably high prices will drop by the holidays. >> reporter: it's nearly a month into fall, but $4-plus gasoline in many markets sure makes it feel like the summer driving season.

the potential new chairman of cracker barrel is over a barrel because of possible resume padding.cracker barrel's recently designated chairman james bradford is being questioned by biglari holdings, the company that owns the restaurant chain. bradford claims to have been the head of an "nyse-listed company" for seven years, a fact biglari says is not true. chicago and san antonio will be the first cities where vending machines will display calories on soda. coke, pepsi and dr. pepper are rolling out the new machines. it's a premptive move. proposed regulations could require all restaunrants and vending machines to post calorie information as early as next year. critics have been raising concerns about sugary drinks and fatty foods. still to come, how to be a go- getter in small business. a popular columnist tells us how to take the reigns on launching a start up. but first, following the money trail. who is spending billions to get their candidate elected? bill moller uncovers the shocking truth, next. ñçbÑ never look a howler monkey in the eye. we built the entire library out of

a storm dubbed frankenstorm barrelling toward the east coast. [ male announcer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him,

to $500 a barrel.ing for president need to come up with a plan as to we can get off 2 million barrels a day, we can get off of that very easy with our own resources in this country. we have more oil, we have the natural gas that can go to heavy duty. what you need out of this third debate is a plan. >> t. boone pickens, always a pleasure to talk to you. thank you for joining us. >>> if there's one country doing things the right way, it's china. that's one of the reasons people are talking about it. >> changes that were taking place in china. >> china needs the united states. >> for some emerging markets like china. >> the governor for energy and infrastructure has made china a world power. how is china's rise changing the world future and how can you capitalize on it right now? that's next on "your money." now, that's what i call a test drive. silverado! the most dependable, longest lasting, full-size pickups on the road. so, what do you think? [ engine revs ] i'll take it. [ male announcer ] it's chev

, not oil, but barrels of oil equivalent natural gas than the saudis have.ean, here we are with it. this oil, we've got to do -- for 40 years we have imported oil and we have been connected to the mideast. okay? so we have -- now have enough oil and natural gas to get off that, if you look at the straits of hormuz today, the 17 million barrels of oil goes through the straits. only 14.2 barrels come to us. okay, we don't need that. we can go without it. if that is the case, now, we have got to look at our whole situation different. our energy is -- we have more energy, the cheapest energy in the world. and we have more energy than anybody else has in the world. >> so we're not deploying it right, you're saying if we just took those 18-wheelers and in five years convert them to natural gas, it saves money, also we can reduce by 75%, the opec -- >> sure, the two million barrels we get, we have four carriers, two in the persian gulf, two outside but close, and all of that is going on, at the same time we're getting people killed every day. now, we have this situ

the wind's always going to be at the whims of -- whims of the middle east. >> fudge bl means one barrel can be exchanged for another one easily. i think the question you're raising is the one steve related to earlier. and i think it's, it is true that even if we've much for end dependent or less opportunity our policy's knot we can. it lovess -- but, still, if you have a major disruption of oil supplies in the middle east, that will effect everyone around the world. what happens to oil prices in the norway is affected by what happens there. and the middle east has been the source of the upheaval for many peoples going babb b to 1956. >> host: lois in westport, connecticut. hi. >> caller: hi there. i understand that the obama administration had to -- [inaudible] money in china to build windmills, and i wonder why the windmills couldn't be butter here, and i'm not so sure they're practical right now -- [inaudible] and another quick question. what did you think of fracking? >> guest: that's a great question. [laughter] that's not a quick question. but on green is about 4% of our electricit

a fair price for this oil, $75 per barrel. he will tell us why coming up. sandra: also watching apple all day long and the endocrine after a roller coaster ride. remember this stock merely entering correction territory falling 10% from its september highs which was the all-time high bouncing back a little bit, the buyers stepping in $640 level. david: sandor was talking about the bank earnings kicking off later this week. wells fargo says the number one bank analyst on the street, form and lehman brothers joining us with a preview of his top plays this earnings season. sandra: on the rise almost 19% since the lows of the year, so what stock could benefit the most if the oil rise continues? top analyst giving us his pick not just where he thinks oil prices are going but also the oil stocks themselves. david: first we will tell you what drove the market with today's data download. a big down day on wall street with the three major indices in the red, falling for the fourth straight day. posting the biggest three-day drop since back in july. energy and materia

i think this added $600,000 a day based on 275 barrels day. the other thing is this company is really cheap. it's trading at 7 1/2 times on the earnings. but i don't tell people to buy stocks that are up 60%. so we're going to have to look for a better way to do it. >> all right. so mike obviously is bullish and instead of buying stocks he's simile buying a call. it's always good to hit the playbook for those who might be new to the show. when you buy call, you want it to rise by more than the cost of the trade. that's where you see profit. that's all it takes. but anything below that level you'll see losses by expirationing and that's, of course, the tricky part. so mike, walk us through. >> not much to walk you through. it costs about 95 cents. >> you know it's been a few weeks and mike's buying calls not doing trades. since he moved to l.a., he's doing. >> you laid out the fundamentals and like you said i don't recommend people buying stocks up at 60%. if you want to express it that way and laid out volatility is cheap, this is the way to d

thiwere when oil was costing $147 per barrel?say that again. when oil was $147 we paid under five bucks of gas. and it was $147 and now it is $92 a barrel and yet gas is still the same price. is it a price fixing conspiracy. eric bolling next. ♪ ♪ we're lucky, it's not every day you find a companion as loyal as a subaru. love. it's what makes a subaru, a subaru. [♪...] >> i've been training all year for the big race in chicago, but i can only afford one trip. and i just found out my best friend is getting married in l.a. there's no way i'm missing that. then i heard about hotwire and i realized i could actually afford both trips. see, when really nice hotels have unsold rooms, they use hotwire to fill them. so i got my four-star hotels for half-price! >> men: ♪ h-o-t-w-i-r-e ♪ hotwire.com >> announcer: save big on car rentals too, from $12.95 a day. >> i also believe that we have to look at the energy source of the future like wind and solar and biofuels. >> at the same time gasoline prices have double electric rates are up and f

get out of the straits of harmuz, it is $300 a barrel.sane what we're doing over there. these two guys that are running for president need to come up with a plan as to -- we can get off the two million barrel as a day from the persian gulf, straits of harmuz. we can get off that very easily with our own resources in this country. we have more oil. we have the natural gas that can go to heavy duty. what you need out of this third debate is a plan. >> t. boone pickens, always a pleasure. >>> there's one country doing energy the right way, china. that is one of the reasons everybody is talking about it. >> all of this borrowing from china -- >> change that's were taking place in china. >> china needs the united states. >> some emerging markets like china. >> government investment and energy infrastructure made china a legitimate world power. how is china's rise changing your future and how can you capitalize on it right now? that's next on "your money." [ male announcer ] red lobster's hitting the streets to tell real people about our new 15

we actually got a drawdown of 482,000 barrels last week.is reacting to what appears to be very weak economic data that's coming out of china and europe. we have a guest who is going to comment on this. what's the deal? these were bullish numbers but we're seeing oil sell off significantly. >> the fundamentals can't override the fact we have weakening economies in europe and china. at the same time, we have had this kind of qe 3 hangover. that was a lot of money. we all started to realize as trader ifs this doesn't work out -- traders if this doesn't work out, we're in trouble. slowing economy in europe as well as in china, and at the same time this hangover of qe 3 maybe not working out. kind of had some of these assets kind of decline in price. sandra: back below $90 a barrel, crucial pivot point for a lot of traders i have been talking to, what happens now? >> we're going to probably hang out around the levels 85 and 95 until the election is over. i think we have real geopolitical risks just after the election. that is not going to go awa

they do about up to 300,000 barrels day. this is really a great tailwind for them. i actually did a little back of the napkin. i think this probably adds something like $600,000 a day in profit to valero's bottom line based on about 275,000 barrels a day of production out of those two refineries. you know, the other thing is this company's really cheap. i mean it's trading at about 7 1/2 times full year earnings, 4 1/2 times on the ebitda basis, but i don't tell people to buy stocks that are up 60%. so we're going to have to look for a better way to do it. >> all right. so mike obviously is bullish, and instead of buying stocks, he's simply buying a call. for everyone who thinks options are tricky, this is as easy as it gets. it's always good to hit the playbook for those who might be new to the show. this is a bullish strategy. when you buy a call, you want the stock to rise above the call by more than the cost of the trade. that's where you see profit. that's all it takes. but anything below that level, and you will see losses by expiration, and that's, of course,

the beltway lanes are open in maryland just picking up the last of the construction barrels.big problems. back to you. >> thank you. 4:43, 47 degrees. >> a maryland family is suing the makers of a popular energy drink. why the companies blamed for the death >> investigators trying to find out if a woman was sexually assaulting a long a popular jogging trail in bethesda. a woman was jogging on the capitol crescent trail route 7:00 last night when a main came from behind and struck her on to head . >> you will sometime later off the trail at was able to get back on the trail, and a 30- year-old male driver was passing by, assisted her to this address. >> the victims suffered serious head injury and it could be some time before they get a description of her alleged attacker. >> prince george's county police looking for the driver in the hit-and-run crash that left a 21-year-old pedestrian critically injured. they believe the driver was in the gold sedan, possibly a honda. it happened saturday afternoon on university boulevard. they believe the driver was racing with another car

> did anyone go into a barrel alive?nd these come together, one thing you can depend on is that these will come together. delicious and wholesome. some combinations were just meant to be. tomato soup from campbell's. it's amazing what soup can do. tomato soup from campbell's. [ female announcer ] some people like to pretend a flood could never happen to them. and that their homeowners insurance protects them. [ thunder crashes ] it doesn't. stop pretending. only flood insurance covers floods. ♪ visit floodsmart.gov/pretend to learn your risk. >>> when we traveled to the czech republic for "lockup world tour," we encountered one of the most unusual prisons we had ever seen. >> i remember we went into this beautiful little village of mirov. it was like being transported into another time. it was beautiful and quaint. there were none of the trappings i'm used to, billboards, advertisement, fast food places. then on top of a mountain was this gorgeous old castle and that was mirov prison. >> inside this fairytale-like 13th c

cracker barrel. it's cheddar, perfected. >> investigators and a grieving community search for answers after a deadly shooting at a salon and spa outside milwaukee. three women died and others were injured and are now recovering at local hospitals. the suspected shooter, radcliffe haughton, later killed himself inside the building. wife worked at the slot and recently filed a restraining order. lance armstrong has been stripped of his seven tour de france titles. it was announced this morning that the federation would not appeal the u.s. anti-doping agency's report on armstrong. >> the decision confirming lance armstrong's banned from cycling and stripping him of his tour de france titles completes the cyclist's fall from grace. "lance armstrong has no place in cycling," the president of the agency announced today. the president described the report as sickening. >> we will striban him from cycling and strip him of his seven tour de france titles. lance armstrong has no place in cycling. >> lance arms

when you think about natural gas at 4 to 6, think about oil of 24 to $36 a barrel.1/4 to 1/3 what oil costs. that's what's going to provide america with this competitive advantage that china, japan, korea, europe, the rest of the world won't have. this is a $250,000 piece of equipment called an iron roughneck. and it's called that because it takes a roughneck's job, and a roughneck is the industry terminology for a worker who works on the rig, and takes what was previously a dangerous and dirty job and makes it safer and makes it easier. and so we're constantly investing in machinery like this. it doesn't replace people but makes them more efficient. we have wells that john d. rockefeller drilled that are over 100 years old. they're still producing natural gas from shale today. so just to be conservative we say we think these wells will produce for 50 years. but they'll likely be here for 100 years. >> jim, here we are. we're stepping up to look at the driller's console. you are looking at a digital world brought to a drilling rig. ten years ago wouldn't have had th